Explain IRDA act?

Ans: insurance regulatory and development authority (IRDA) act 1999 was passed to make
the insurance regulation more efficient and to develop the insurance sector according to the
fast changing global economic changes especially against the liberalization and globalization.
The act empowered the government to establish an authority to protect the interest
of the insurance policy holders. Its purpose is regulated, promote and ensure orderly growth of
insurance industry.
Malhotra committee: The government of India constituted a high power committee
headed by sri. R. N. Malhotra, former governor of the reserve bank of India in april 199. The
committee was entrusted with the responsibility of examining and studying the structure of
insurance sector and recommend ways and methods to make it more efficient and competitive.
The committee submitted its report in January 1994 with a series of
recommendations. The prominent recommendation stressed by the committee was
establishment of a strong and efficient insurance regulatory authority which should be a
statutory and autonomous body on the lines of SEBI.

After a lengthy discussion and further studies, finally in December 1998, the bills
was introduced along with the recommendations of the standing committee on finance and
finally the act came into force in 1999.
Provisions of the Act: The act empowered the central government to establish insurance
regulatory and development authority. It should be a body corporation having perpetual
succession and a common seal with power subject to the provisions of the act. Authority is
managed by a board headed by chairperson appointed by the central government.
The insurance regulatory and development authority empowered to make necessary
amendments to the insurance act 1938, life insurance act 1956 and general insurance business
(Nationalisation) act 1972. consequently the recommended amendments were made in
respective acts.

Benefits of High Premium Auto Insurance

It is logical that higher premiums have countless benefits, although practically everyone is deciding to choose the cheaper versions of auto insurance. These are simple and indisputable facts. Although almost every person feels the consequences of worldwide recession, it is sometimes simply reasonable not to try and save on just about everything. many things will prove themselves worthy especially if it comes to paying higher premiums on your auto insurance. The same is with auto insurance and possible advantages you want to have. Some extra dollars will prove your decision was right although it took more money out of your pocket that you have wanted
Basically, it is not that much of a difference once you choose higher premiums in comparison to lower ones which cover only the basic stuff, while the other covers practically everything. Quite the contrary, some additional rate you will pay each month will seem like a pain only at first. On the other hand, you are certain it will come back to you in the case of need and that is what matters. Laws differ once you are crossing borders, where higher premiums on your car will certainly mean you are a serious and attentive person
Insurance companies usually differ in their regulations. if you choose to pay a costlier option, you will feel covered no matter what situation might occur. It also matters in comparison to the car you drive. People avoid cheap auto insurance especially if they tend to choose costly, fast cars. This is a reason enough since you have paid a lot, and it only makes sense you want to protect your costly property by paying larger monthly premiums
If somebody steals your car, you will also see where these extra dollars went, because you are in an advantage situation. Your own garage or your highly secured parking space with a guard will mean nothing once for a grand theft auto offence. Low premiums won’t provide much coverage to provide you your beloved Mustang or a BMW and you just might regret those extra dollars you should pay. If you choose to drive with style, pay higher premiums and be on the safe side

There are many people on the road, addicted to fast drive and thus susceptible to more accidents than others. Driving fast can always result in an accident, and this is where your costlier benefits come onto the stage. If your choice was a cheap auto insurance, you will feel no benefits of high premiums, which are allowing you to cover all the costs of damaged cars or medical expenses. Every driver should keep in mind that value of the vehicle should be followed by properly chosen high premiums which carry many advantages.
You must know that many factors will always influence the premiums you pay monthly, which are not the same for all. Your credit history is also what always count. Cheaper insurance rates are usually asked by people with high credit background. People with low credit score usually opt for higher premium rates since they want to provide themselves as less risk as possible. You will only benefit from the choice which is result of careful price evaluation and your own reasonable decision

Data Breach Insurance Coverage Lawsuit Highlights Necessity for Cyber Liability By Andrew Martin

In August of 2012, the Sixth Circuit ruled on a case that determined who is responsible for the costs associated with loss of data arising from a hacking incident in Retailer Ventures, Inc. v. Nat’l Union Fire Ins. Co., -- F.3d --, 2012 WL 3608432 (6th Cir. Aug. 23, 2012). In this matter, DSW Shoe Warehouse was targeted by computer hackers who successfully accessed their systems and harvested the credit card and checking account information for more than 1.4 million DSW customers. In its efforts to conduct thorough investigations into the incident and comply with the numerous state and federal data breach notification requirements, DSW incurred expenses of more than $5M.
DSW sought to offset these costs (which, by the way, are not at all atypically large for a data breach of this size), by making a claim on its insurance policy under an endorsement called “Computer & Funds Transfer Fraud Coverage.” While this endorsement may seem like a no-brainer policy to make a data breach claim under, the language of the policy provided coverage for loss “resulting directly” from theft as a result of computer fraud. Here, however, the insurance provider refused to cover the loss, claiming that any loss sustained did not “result directly” from the hacking event. On appeal, the Sixth Circuit affirmed the lower court’s award in favor of DSW that the insurance provider had breached the contract with DSW when it refused to cover DSW’s claim as the language of the policy was ambiguous, and thus should be construed in a light most favorable to the non-drafting party
While DSW ultimately prevailed, this case highlights how important it is to have a cyber liability policy in place that is written to specifically cover the costs associated with a data breach event. When forced to rely on non-cyber liability endorsements, the insured may find itself having to engage in legal gymnastics to argue that it is entitled to coverage of associated breach costs. Even for events involving a fraction of the number of users, costs can quickly extend to the 6 figures and beyond. If your company routinely handles sensitive customer information, be sure you and your vendors have cyber liability policies in place to cover the costs related to these unfortunate events.